Trader Joe: The Tokenomics Overhaul

TLDR

New staking options will be available, rJOE staking opens on the 1st of February and sJOE + veJOE will rollout by mid-February

Below we provide the high level for each staking option

  1. Stake JOE for rJOE and gain access to Rocket Joe launches
  2. Stake JOE for sJOE. Earn your share of the platform revenue, with stablecoin rewards
  3. Stake JOE for veJOE. Earn boosted JOE yield in select farms as well as future governance voting power

Modular Staking

We introduce new options and utility for JOE Stakers. There will be three staking pools available. Users can deposit JOE into any or all of the staking pools on offer. Below we explore the key differences at high level:

rJOE — For the New Token Huntooors

Users can stake JOE into rJOE and gain access to Rocket Joe Launches

  • JOE Stakers earn rJOE over time
  • rJOE is used as a credit to enter Rocket Joe launches
  • You can harvest rewards, at any time. Similar to a yield farm
  • rJOE is non-transferable and is burned when used to enter Rocket Joe launches
  • There are no fees to deposit or unstake

sJOE — For the Stablecoin Enjoyooors

Users can stake JOE into sJOE and share the revenue generated by the platform, the rewards are paid out in stablecoins.

  • Earn stablecoin rewards over time
  • You can harvest rewards, at any time. Similar to a yield farm
  • There are no fees to unstake from sJOE
  • There is a deposit fee that scales up to a maximum of 3%, this is based on the demand at the current period of time for sJOE staking
  • The deposit fee is paid on entry in JOE Tokens and distributed to the existing sJOE Stakers, it is designed to prevent over-saturation

veJOE — For the Yield Farmooors

Users can stake JOE into veJOE and earn boosted JOE yields for select farms on the platform.

  • Earn veJOE over time
  • veJOE applies farm boosts to selected Farms (up to 2.5x (+150%))
  • You can boost your veJOE accrual speed by topping up your staked JOE, every 15 days
  • veJOE will receive voting power, in future governance
  • veJOE is non-transferrable
  • You can unstake JOE at anytime, however, you will lose all accrued veJOE
  • There are no fees to deposit or unstake

Summarising the above

Users will have three staking options to choose between, or they may choose to stake into any combination

veJOE

Users stake JOE into veJOE and will accrue veJOE, over time. veJOE provides a Farm Boost to JOE rewards, on select farms (full list below). The amount of veJOE you have will determine your share of the Farm Boost rewards.

How does the Farm Boost work?

veJOE holders can increase their JOE yield farming rewards by up to +150% (2.5X).

User JOE farming multiplier = 1 + (userVeJoe / totalVeJoe) * MAX_BOOST_FACTOR

userVeJoe balance is measured at the time of deposit to farm or last harvest.

totalVeJoe balance of the farm is the sum of all userVeJoe of participating users in farm, and is updated when userVeJoe is also updated.

The JOE Farms Boost you receive will depend on how much veJOE you have, as well as, the amount of veJOE that other users in the farm have.

Let's view some examples of how this works:

Various examples of users in farms with and without veJOE

How to earn veJOE

  • Stake JOE and earn veJOE over time
  • The more JOE you stake, the more veJOE you earn
  • You can earn a maximum of 100x your current staked JOE eg:
  • If you Stake 1 JOE, you can earn 100 veJOE over 365 days
  • If you Stake 10 JOE, you can earn 1000 veJOE over 365 days
  • veJOE is earned at a consistent and constant rate
  • If you unstake JOE from veJOE, you lose all accrued veJOE

Boost your veJOE accrual

You can double the rate at which you accrue veJOE

Me and the boys boosting farm yields with vejoe

How can you boost veJOE?

  • Top up your staked JOE position with at least 5% more JOE
  • This boost will double the rate at which you accrue veJOE
  • The boost will last for 15 days
  • Every time you top up your staked JOE position (with at least 5%), you activate the 15-day boost, from that point.
  • You can re-activate your boost anytime, by topping up 5% or more JOE
  • If you top up during an existing boost, the boost timer will reset.

The optimal play for accruing veJOE

  • Top up your staked JOE with an additional 5%, every 15 days exactly.
  • You can, however, top-up whenever you like and as long as your top-up amount is 5% or more of your existing staked JOE, you will activate the 15-day boost timer from the moment you top up.

Further Examples for veJOE

Example: Earning veJOE

If Volly stakes 100 JOE, by the end of the year, Volly will receive 10,000 veJOE at a ratio of 1:100, evenly distributed at a base generation rate of 1 veJOE per second, per JOE.

In this instance, Volly will receive approximately 27.7 veJOE per day.

Example: Boosting veJOE accrual

  • Volly wants to speed up their accrual rate to get more veJOE
  • Volley can do this by topping up their staked JOE by a min of 5%
  • This action will activate a 2X boost for 15 days
  • This boost, doubles Volly’s veJOE accrual rate
  • With this boost, Volley will receive ~833 veJOE over the 15 days
  • Without the boost, Volly would have received ~416 veJOE over 15 days

Example: Earning veJOE and Boosting veJOE

  • If Volly keeps activating the boost every 15 days, Volly will accrue 10,481 veJOE over a duration of 150 days
  • If Volly does not activate the veJOE boost and leaves 100 JOE to stake, Volly will accrue 10,000 veJOE over a total of 365 days

What Farms will receive a veJOE Boost?

  • AVAX-USDT.e
  • AVAX-USDC.e
  • AVAX-DAI.e
  • AVAX-MIM
  • AVAX-WETH.e
  • AVAX-WBTC.e
  • USDC-USDC.e
  • USDT-USDT.e
  • AVAX-JOE

Users will need to migrate from these existing Farms, into new farms that will facilitate the veJOE boost.

Voting Power

  • veJOE will receive governance privileges, to be defined in future scope.
  • 1 veJOE = 1 voting power
  • Unstake JOE = lose all your (veJOE) voting power

Summarising veJOE

  • Accrued veJOE applies Farm boosts to JOE Rewards
  • The boost can increase your JOE farming rewards by up to +150% (2.5x)
  • The boost you receive, depends on your share of veJOE, relative to other users in the Farm
  • veJOE is earned from staking JOE tokens
  • Boost the accrual speed of veJOE by topping up your staked JOE +5%
  • Boosted veJOE accrual speeds last for 15 days
  • You can repeat boosts by topping up +5% on top of your existing JOE
  • veJOE will provide future governance voting power
  • If you unstake JOE from veJOE, you lose all accrued veJOE

xJOE

What will happen to xJOE?

  • xJOE will be deprecated
  • xJOE Revenue Share will switch to sJOE
  • Those who have a leveraged position open on their xJOE eg in Banker Joe, can continue to keep those positions open. However, when sJOE is deployed, revenue share for xJOE will stop.
  • Users will have a period of time to transition from xJOE to a new staking pool of their choice (rJOE, sJOE or veJOE (or a combination))

Why change xJOE?

  • xJOE mechanism was inherited from xSUSHI, a yield generating token optimized for gas costs. This optimization was a trade-off for UX.
  • xJOE does not allow for the accrual of rewards in real-time and therefore lacks clarity to the end-user when trying to understand the yield they can receive or rewards they have accrued to date.
  • The core xJOE mechanic becomes sJOE (share platform revenues) and we provide rewards in real-time, just like a yield farm.
  • We offer stablecoin rewards instead of more JOE. Many users do not want more JOE on top of their JOE and therefore sell the additional JOE they receive. Stablecoin rewards will remove the selling pressure this action generates.

Timeline for Roll-out

Start of February — rJOE launch

  • Users can stake JOE for rJOE on the new ‘Launch’ page
  • xJOE staking unchanged

Middle of February — sJOE and veJOE Launch / xJOE deprecated

  • Staking page revamped to Staking V2
  • Users can stake into sJOE or veJOE
  • Users can unstake xJOE, and stake into sJOE
  • xJOE farm deprecated
  • Users can migrate to the veJOE Boosted Farms

We take inspiration from the innovative design of ‘vePTP’ from the Platypus DeFi team. Platypus.finance

About Trader Joe

Trader Joe is a one-stop-shop decentralized trading platform native to the Avalanche blockchain. Trader Joe builds fast, securely and aims to serve the community at the frontier of DeFi. Maximize your yield generating activities under one fully integrated roof, providing you with a unique, innovative, and highly accessible DeFi experience.

Twitter | Discord | Telegram | Facebook | Instagram | YouTube

--

--

--

One-stop Trading Platform on Avalanche

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Bitcoins And Betting: Cryptocurrency’s Importance When Gambling Online

ANNOUNCING an Exclusive Partnership NFT and Syrup Pool with QuickSwap!

Tax Break!

Community Newsletter #1 — September 2021 Recap

Real estate and cryptocurrency: an apartment was sold for 3 Bitcoins in Portugal

S-Wallet is the best financial aggregator! Why?

How will ICOs evolve in 2018?

Privi PIX project overview

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Trader Joe

Trader Joe

One-stop Trading Platform on Avalanche

More from Medium

Bulletin Board: January 9th

Yak Guides take you through how to leverage YAK as collateral and the Moremoney partnership

April/May Transparency Recap

Cross-Chain Capital Enters Crabada!